WASHINGTON — As the House Friday approved the most sweeping financial regulatory reform legislation since the Depression, municipal issuers are debating the effectiveness of a little-noticed provision that would require rating agencies to rate municipal and other debt on the same scale and based on the likelihood of repayment to investors.

The House voted 223 to 202 to approve the massive bill, which would regulate over-the-counter derivatives for the first time, create a Consumer Financial Protection Agency, and establish a multi-agency council to monitor systemic risk as well as an orderly process for winding down large, failing non-bank financial institutions.

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